Banks and credit unions granted 17.7% more y / y cash loans in terms of numbers in January 2022, the Credit Information Bureau (BIK) reported. In terms of value, there was an increase by 14.2%.
Positive January readings of dynamics in cash loans, by 17.7% in terms of numbers and by 14.2% in terms of value, can be perceived positively. Partly, however, the positive dynamics are due to the low base from January last year, it said.
“Cash loans from all amount ranges recorded positive dynamics in January 2022 compared to the corresponding period of last year. This time, the result was not determined by high-value loans, as was the case in the entire 2021, but low-value loans, which are now the main driver of In January this year, low-value loans recorded the highest positive dynamics of lending, both in terms of number and value. The increase in low-value loans, i.e. from two amount ranges to PLN 5,000 and between PLN 5-10,000 + 26.1% L) and (+ 22.5% W) and (25.4% L) and (25% W). Loans from these two ranges account for 9.8% of the sales value in January 2022, and in numerical terms, they already account for 50% of granted cash loans. Hence, the dynamics in the entire segment of cash loans in terms of numbers is higher than in terms of value,” said BIK chief analyst Waldemar Rogowski.
For cash loans, the average value of a loan taken out in January 2022 is PLN 20,597 – a 2.9% decrease compared to January 2021.
“In 2021, banks were much more willing to grant cash loans for larger amounts than in the first year of the pandemic. This was supported by low interest rates. Until October 6, 2021, the basic NBP interest rate (reference) was 0.1%. After four increases (in October , November, December and January) in total by 2.65 percentage points, it is now at the level of 2.75%, i.e. the level from June 2013. So it returned to the level from 9 years ago. compared to December 2021, in terms of both numbers (-10.9%) and value (-8.1%) is the first negative reaction to the higher cost of the loan, or is the seasonal effect? January has always been a poor month for loans We should get the answer to this question in the coming months,” added Rogowski.
The BIK analyst also indicated that, compared to January 2021, the value of the Cash Loans Quality Index improved (decreased) by 0.55 percentage points. For ten months m / m we have seen an improvement (decline) in the Index, which is undoubtedly a positive signal, informing about a decrease in the credit risk of these loans.
Source: BIK and ISBnews
